lifespans; “Empowering Lives”—exploring ways to empower individuals and communities through education, technology, and other advancements; and “Connecting Lives”— fostering connections and collaborations between people, cultures, and nations. How will the Japanese government and businesses navigate the role of a global citizen and remain a strong ally of the US as it touts protectionism? How will SIIF buttress and support business and government to advance an impact economy in Japan? Will Japan exhibit futō fukutsu and hold steady and be bold in the face of these challenges, or will it fold and comply with new geopolitical demands and changing economics? In April 2025, a Japan Times headline read, “Trump’s DEI rollback gives Japan a chance to draw ESG inflows.” 4 According to the article, there are many reasons Japan can shine in ESG and DEI. Although it still lags in gender equality, the country increased the number of female directors faster than global peers in 2024. Several Japanese corporation executives believe that such progress on diversity can drive long-term stock performance. The MSCI index that has a bigger weighting on shares of Japanese firms committed to gender equality has outperformed the Nikkei stock average by over 10 percentage points in the last two years. At the same time, US companies are seeking investments and partner companies that can withstand a volatile market. Japan equities have become more appealing since the Trump election and firms of interest include Mitsubishi UFJ Financial Group, Sony Group, and Orix. The article discusses how increased US attention in these firms and equities represents a growing trend by US companies to shift to ESG investments in Japan and Asia. It is expected that Japan’s ESG-related assets will grow 60 percent to an estimated US$7 trillion by 2030, in large part because of a supportive economic future and government backing. Additionally, climate investment to meet net- zero and transition goals remains a priority for financial investors. Japan is already feeling the negative impacts of climate change with increased temperatures, loss of fisheries, and risk of natural disasters, including forest fires. This final chapter reflects on what is next for Japan’s impact economy given progress made over the past decade and current geopolitical tensions. To answer these issues, leaders introduced in the first chapter were interviewed again to share additional perspectives. Representing Japan’s Social Innovation and Investment Foundation (SIIF), Nanako Kudo and Mitsuaki Aoyagi, members of the SIIF executive committee, and Fumi Sugeno, Head of SIIF Global, offer steps for the future. Jacob Schlesinger, CEO of the United States-Japan Foundation, also discusses his perspectives as a leader in philanthropy and as someone who bridges US and Japan relations. Private sector leaders who offer their vision include Ken Shibusawa, Chief Executive Officer of Shibusawa and Company, and Kotaro Sueyoshi, Group Chief Sustainability Officer and 202
Ten Years in the Making
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